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Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

Prosperity House, 2x BTL's, Interim Equity

Gower St, Derby


£164,000

Funded

£164,000

Total Fund


Term (Months)
12

Projected Annualised Return
11.0%

Strategy
Standard BTL

Interim Equity
Projected returns are an estimate. Returns may go down or up based on the future market value of the property and rental values achieved.


Key Points


  • Provided by Prosperity at a significant discount
    Following the popularity of the last two units funded in Prosperity House, we have decided to take up another two units, this time from the second phase of the development which is now complete. They have been provided by Prosperity at a significant discount and to maximise returns for Investors, CrowdLords will be the LandLord. At that point investors will be given the option of extending their investment term by 12 months or withdrawing their investment. New shares will be issued to accommodate those who wish to leave.
  • 30% of the purchase price
    The purchase is funded partly by debt at less than 30% of the purchase price and all rental income will be retained to boost the capital return at the end of the term. As an Interim Equity investment, by way of Redeemable Shares, it delivers a fixed capital gain of 11% p.a. payable on exit. We achieve this by redeeming the shares at a fixed price of £1.11 at the end of the 12 month term.
  • An average 3.5% p.a. increase in value will generate an additional 1.75% p.a. return
    In addition, at the end of the 24 month period, if the units are sold above the base value of £135,000 each, then 50% of the extra profit will be shared between Crowd Investors. For example, an average 3.5% p.a. increase in value will generate an additional 1.75% p.a. return.
Summary
  • Recently completed development in the heart of Derby City Centre
  • High quality interiors in a convenient location
  • At a purchase price 22% below current values
  • Fixed capital gains of 11% p.a.
  • Option to extend the term by a further 12 months
  • Additional profit share payable if the properties increase in value above the current estimated exit value

Projected returns


Ordinary Class B Shares
  • For investors investing £20,000 or more
  • Projected Total Return of 44% or 22% p.a.**
  • Over 24 months
  • Minimum Preferred Return of 16% p.a.***
Ordinary Class C Shares
  • For investors investing £20,000 or less
  • Projected Total Return of 35% or 17.5% p.a.**
  • Over 24 months
  • Minimum Preferred Return of 12% p.a.***

*Target start date is 31st May 2018. Shares may be issued in two tranches to avoid delays.
** Projected return to be paid as a capital gain if circumstances make it possible to do so
*** The Minimum Preferred Return is the return payable to Crowd Investors before the Developer takes any profit themselves.

Property name: Prosperity House

Address: Derby

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young professionals

Description: Conveniently situated in Derby City Centre, Prosperity House comprises 147 one and two bedroom apartments across two phases. The second phase has recently been completed and is now ready to be occupied.  Read more.

Local Property Market


Derby has seen property prices underperforming over the past twenty years when compared with the rest of England and Wales, however, they are improving and it is felt that the significant regeneration schemes along with other recognition of its potential, e.g. its identification as a 'Top 25 European City of the Future' by fDi, will help the local property market to out-perform other areas.

As England's most central city, Derby is served by extensive transport networks connecting it directly to London, Newcastle, Sheffield and Cardiff, to name a few. Derby is also the home of significant employers, in particular leading transport manufacturers including Rolls Royce and Toyota.

This development is conveniently located close to the central business district and it is ideal for commuters. It is also a short walk to the Intu Shopping Centre (formerly Westfields), other excellent leisure facilities and some good local schools (not forgetting the University).

Local Property Market analysis uses House Price Index data from The Land Registry. The commentary is opinion only and should not be taken as fact.

 

Capital Investment


Purchase Price £210,000
Stamp Duty £6,300
Legal & Professional Fees £2,000
Operational Costs £5,000
Contingency Allowance £2,700
CrowdLords Fees £8,000
Total Fund Required £234,000
Less Debt Finance £70,000
Total fund after Mortgage Finance £164,000
Less Finance & Deposits -£N/A
Remaining Funds Required * £N/A
Ordinary A Shares - Developer Equity £N/A
Ordinary B Shares - Crowd Equity £N/A
Orindary C Shares - Crowd Equity £N/A

* Shares may be issued in Tranches to avoid delays

 

Capital Returns


Gross Sales Price* £270,000
Minus Capital Investment -£234,000
Plus Capital repaid £10,466
Contingency Fund not used £2,160
Sales Costs -£5,740
CL Growth Fees -£4,289
Gross Sales Proceeds £38,598
Corporation Tax £7,334
Net Sales Proceeds £31,264
Share of Growth Paid 56.5%
Capital Paid To Investors** £17,664
Capital Return to Investors 11.0%

*The stated Gross Sales Value is based on local comparisons and the opinion of local agents.

** 50% of any Sales Proceeds above the figure stated above will also be distributed to Shareholders at the end of the 24 month period

 

Return Summary


Investment Period 12 Months
Avg. Annual Income Return 0.0%
Total Income Return* 0.0%
Total Capital Return** 11.0%
Projected Total Return 11.0%
Fixed Total Annualised Return 11.0%

* Income Return figures assume that the property will be void for a period of six weeks during the investment term, and that the rent charged will be £625 / month per unit. In reality all of these variables might change.

CrowdLords Development Analysis


Risk Return Profile*

CrowdLords Risk Rating
Investment Period D
Macro Location & Market C
Micro Location B
Level of Development A
Landlord Track Record A
Overall B

* The Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the LandLord. Investors should make their own assessment of Risk & Reward before investing

 

Capital Returns

We include a CrowdLords Risk Rating to illustrate where the investment lies on our Risk Return Profile.  Where risks are higher it is usual to expect a higher return and this is designed to aid quick comparisons only. It is our opinion only and should not be taken as a recommendation. You should judge the Risk for yourself using the information provided and your own investigations to form your own opinion.
We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk. The five areas we grade are:

The Investment Period – the longer the period, the less the risk
Macro location and market – has the area performed well historically
Micro location – is the property in a good location for rental / sale
Level of Development – the degree of development and the cost / time risks
Track Record – the track record of the LandLord / Developer

We combine these into a weighted rating between A and E and show how the Risk / Return compares with what we would expect.

About the Sponsors


With this Investment, CrowdLords has the role of Managing Investor and is responsible for managing the property as the LandLord.

In these instances, CrowdLords has a small equity stake in order to accommodate the legal structure, and we retain income in the SPV to provide a buffer when it comes to the exit.

We use Complete RPI, a specialist letting service, to manage and let the property on our behalf. When it comes to the end of term, we arrange the sale through a local agent. Post sale, when Investor shares have been redeemed, then we are also responsible for closing down the SPV.

Property details


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